Things are getting a little bit stretched maybe in terms of PEs (price-to-earnings valuations), but the reporting season is promising, so it will depend how that plays out.
Quotes about pes (4 Quotes)
I think companies that are selling at the lower PEs, obviously, carrying some question marks in investors' minds, are the ones that you vote for here. So, Wachovia Bank, for example, looks interesting to us, ... But, generally, I think the lower priceearnings multiple financials are where you want to look right now. The quality merchandise has been bid up. And I think this spread right now says move from the quality financial down scale a little bit for the lower-priced ones.
This was one of the last areas of technology that still had the great, glory days of April going for it. The market is just not willing to put up with those high PEs and is shooting them down one by one.
A PE is meaningless by itself. A PE has to look at the price you're paying for earnings but you have to compare it relative to something. Companies with low PE's also tend to be the companies that have the lowest prospects for growth.